Annual report pursuant to Section 13 and 15(d)

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of components of inventory

As of December 31, 2017 and 2016, the components of inventories were as follows:

 

  Years End December 31,  
    2017     2016  
Raw materials   $ 2,716,392     $ 3,302,818  
Finished goods     3,100,661       1,786,773  
      5,817,053       5,089,591  
Less:  Inventory reserve     (330,000 )     (250,000 )
Total Inventories, net   $ 5,487,053     $ 4,839,591
Schedule of reconciliation of the product warranty liability

The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to the Company’s warranty coverage:

 

    Years End December 31,  
Changes in estimates for warranties   2017     2016  
Balance at beginning of the period   $ 175,000     $ 25,000  
Payments     (364,163 )     (135,457 )
Provision for warranties     364,163       285,457  
                 
Balance at end of the period   $ 175,000     $ 175,000  
Schedule of estimated life

Estimated useful lives of the principal classes of assets are as follows:

 

  Estimated life
Production tooling, jigs, fixtures 3-5 years
Shop equipment and machinery 5 years
Vehicles 3-5 years
Leasehold improvements Shorter of the lease term or estimated useful life
Office equipment 5 years
Software 5 years
Schedule of anti-dilutive

The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive:

 

    December 31,  
    2017     2016  
Options     30,000       —  
Warrants     115,000       115,000  
Total     145,000       115,000